The relevant due date from which interest is chargeable on payments on account is normally the statutory due date (see SAM60080). There are a number of limited situations where, by concession, the relevant dates can be deferred.

Amendments to relevant due dates

Where new 1996-97 payments on account (PoA) are set up manually for a taxpayer who commenced trading prior to 6 April 1996, the relevant date(s) may be deferred.

A deferred relevant date applies if the amounts payable are notified to the taxpayer after 31 December 1996 and the taxpayer notified chargeability for 1995-96 on time.

A taxpayer who is late notifying chargeability can still benefit from a limited concession but only where the business commenced between 2 January 1996 and 5 April 1996. If trading commenced before 2 January 1996 the statutory due dates apply.

Establishing a new relevant date

Provided the taxpayer notified chargeability on time, one or both 1996-97 payment on account due dates are deferred. The deferred due date(s) is 30 days after the issue of the first notification of payments on account, either by letter or on a statement, to the taxpayer.

Where the taxpayer is late notifying chargeability, and the business commenced between 2 January 1996 and 5 April 1996 inclusive, the due date of the first payment on account is deferred. The deferred due date is the earlier of

30 days after the issue of the first notification, either by letter on a statement, or

New / revised PoA which retain the statutory due date

No amendment is made to the relevant date where

1996-97 payments on account are notified after 31 December 1996, either

For the first time and there is no HMRC delay involved, or

In increased amounts

And

The new or revised amounts only emerge when a 1995-96 assessment raised on or before 31 December 1996 is settled (for example, where 1995-96 tax held over by the taxpayer or agent is released for collection)

In this situation it is the taxpayer’s responsibility to ensure that a sufficient amount is paid on or before the payment on account due dates.